Molano Company produces ponchos. The company has established the following direct materials and direct labor standards for one poncho:
Wool (3 yds. @ $3) ....... $ 9.00
Labor (3.5 hrs. @ $5) ..... 17.50
Total prime cost ....... $26.50
During the first quarter of the year, Molano produced 25,000 ponchos. The company purchased and used 78,200 yards of wool at $2.90 per yard. Actual direct labor used was 90,000 hours at $5.20 per hour.

Required:
1. Calculate the direct materials price and usage variances.
2. Calculate the direct labor rate and efficiency variances.
3. Prepare the journal entries for the direct materials and direct labor variances.